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New Global Economic Order (Changes in the World Economy (Economic…
New Global Economic Order
Changes in the World Economy
Shift from an import substitution to an export-led growth strategy.
Decline of trade barriers
Increase of international competition
New industrial revolution
Economic globalization
Technological and political developments
Criticized for inequality, exploitation, unemployment
Entailed developments in
trade, finance, and foreign direct investment
Financial revolution
End of the Cold War
Shift from a state-dominated to a market-dominated international economy
Economic regionalism
State-centric Realism
Power and power relations
Does not reject the importance of moral and
value considerations in determining behavior
International system is anarchic
Emphasizes state as the principal actor in international affairs
Thucydides, Machiavelli, and Morgenthau
Constructivism
Emphasizes the role of ideas, social structures, and human volition in political affairs
Idea of identity: how a society defines itself
International politics is socially constructed
National interests as defined in terms of military security and political independence
Purpose of Economic Activity
To instruct society on how markets function in the production of wealth and how these markets can be made most efficient
To benefit individual consumers and maximize efficient utilization of the earth’s scarce resources.